- July 5, 2021
- Posted by: Stratford Team
- Category: Economy
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- The ISM Services PMI is set to show a minor decrease to 63.5 points.
- Post NFP, the inflation component is set to steal the show.
- The greenback’s downside correction may end in response to the report.
Timing is everything. As the release of Nonfarm Payrolls has triggered a downward dollar correction, the next significant release could unleash fresh dollar strength – almost regardless of the outcome.
The ISM Services Purchasing Managers’ Index for June is released on July 6, after the NFP. That means it does not serve as a hint toward the labor figures but is still useful to gauge the state of America’s largest sector. There are good reasons to assume the focus would be on the Prices Paid component – which represents inflation.
What the recent reaction tells us
The reaction to the ISM Manufacturing PMI provides hints about the dollar’s reaction. While its Employment component – a clue toward the jobs report – missed…
